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Updated almost 9 years ago on . Most recent reply

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40
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Daniel Roman
  • Fort Lauderdale, FL
6
Votes |
40
Posts

Can't cashflow on multi-family because of high mortgage payment

Daniel Roman
  • Fort Lauderdale, FL
Posted

Hello BP! your opinions and thoughts will be very appreciated.

I have currently been crunching numbers on deals in the Broward, Florida areas. I am using the BP rental calculator on duplex,triplex, and fourplex in the area. The problem is that after I crunch numbers I can't get a positive cash-flow. Granted i'm just using the properties I find online to study, and I can probably find better deals If I dig deeper. But none the less I find it absurd that I can't find positive cash flow on one property. I plan on using an FHA loan with %3.5 down payment. The local consist of triplex from 200k-300k. Is my mortgage simply too high to be profitable? Is this kind of REI not sustainable in my market? Are there any alternatives to cut my monthly mortgage payment with only %3.5 down? Would highly appreciate your feedback, Thank you!

Most Popular Reply

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17,651
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30,538
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
30,538
Votes |
17,651
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

If you are using an FHA loan, then the property needs to be owner occupied. You should not be viewing a house you live in with a very low down payment through same way you would view an investment property with a 20 to 25 percent down payment.

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